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PART II
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
the results of the GMIB business because, prior to the reinsurance fair value of GMIB assets and liabilities were volatile and
transaction with Berkshire on February 4, 2013, the changes in the unpredictable.
The tables presented below summarize results from operations by segment.
For the Years Ended December 31, Increase/(Decrease) Increase/(Decrease)
Shareholders’ Net Income
(In millions)
2013 2012 2011 2013 vs 2012 2012 vs 2011
Segment earnings (loss)
Global Health Care $ 1,517 $ 1,418 $ 1,105 $ 99 7% $ 313 28%
Global Supplemental Benefits 175 142 97 33 23 45 46
Group Disability and Life 259 279 295 (20) (7) (16) (5)
Run-off Reinsurance (488) – (183) (488) – 183 100
Other Operations 94 82 89 12 15 (7) (8)
Corporate (222) (329) (184) 107 33 (145) (79)
Total 1,335 1,592 1,219 (257) (16) 373 31
Net realized investment gains, net of taxes 141 31 41 110 355 (10) (24)
Shareholders’ net income $ 1,476 $ 1,623 $ 1,260 $ (147) (9)% $ 363 29%
For the Years Ended December 31, Increase/(Decrease) Increase/(Decrease)
Adjusted Income (Loss) From Operations
(In millions)
2013 2012 2011 2013 vs 2012 2012 vs 2011
Global Health Care $ 1,572 $ 1,480 $ 1,104 $ 92 6% $ 376 34%
Global Supplemental Benefits 183 148 100 35 24 48 48
Group Disability and Life 311 281 290 30 11 (9) (3)
Run-off Reinsurance (6) (29) (48) 23 79 19 40
Other Operations 94 82 85 12 15 (3) (4)
Corporate (222) (228) (170) 6 3 (58) (34)
Total $ 1,932 $ 1,734 $ 1,361 $ 198 11% $ 373 27%
Global Health Care Segment
We measure the operating effectiveness of the Global Health Care operating expense as a percentage of segment revenues (operating
segment using the following key factors: expense ratio); and
segment earnings and adjusted income from operations; medical expense as a percentage of premiums (medical care ratio or
‘‘MCR’’) in the guaranteed cost and Medicare businesses.
customer growth;
sales of specialty products;
44 CIGNA CORPORATION - 2013 Form 10-K
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